The petrol and diesel prices in India have been slashed by Rs 2 per litre on Wednesday. This price cut comes after a sharp fall in global oil prices.
The revision in fuel prices won't have the same effect on prices in Delhi as the petrol and diesel prices were earlier anyway increased. This was due to the state government's decision of hiking VAT (value added tax) rate in the region with effect from Thursday. Eventually, petrol in Delhi will still be expensive by 28 paise and diesel will get cheaper by 50 paise.
The government said in a statement, "The VAT rate on petrol has been increased from 20 per cent to 25 per cent and on diesel from 12.5 per cent to 16.6 per cent, thereby resulting an increase in the price of petrol by Rs 2.78 per litre (approx.) and in the price of diesel Rs 1.83 per litre."
The prices in petrol and diesel are reviewed by oil firms every fortnight leading to a subsequent revision in fuel prices. The last time fuel rates changed were on June 30 when the petrol prices were slashed by 31 paise a litre and diesel rate went down by 71 paise per litre. All these are done in a bid to bring in uniformity and are in line with a fall in international oil rates.